
New accounting standards which Nigeria’s Central Bank is obligated to implementing in the Year 2022, under the BASEL III Accord, are likely to spur another round of mergers and acquisitions in the banking industry, with associated loss of jobs.
From the beginning of the new banking year, banks in the country are expected to begin implementing specific guidelines from Basel III, as put forward by the CBN. The BASEL III guidelines were originally set to kick off in 2020, but the Central Bank of Nigeria, CBN, rescheduled the implementation given the impact of COVID-19 on the banking sector.
The Basel Accords (‘Basel I, II, III’) are sets of regulations for the banking sector established by the Basel Committee on Banking Supervision (BCBS) which is a committee of banking supervisory authorities established by the central bank governors of various jurisdictions.
The Bank for International Settlement identifies the aims of Basel III, as strengthening the regulation, supervision, and risk management measures of banks.
Basel III is already operational in some countries, although the transition window is open till 2028.
The implementation of Basel III started globally in January 2013 and places importance on strong liquidity and capital for financial stability.
On the likelihood of o losses, Anor Anyanwu, a former bank executive director, said, “Though the implementation of Basel III is meant to give us a strong banking sector but there are no way some banks will not be consumed by the implementation and hence, there will be job loss.”
Stephen Iloba, an economist, said, “I think the CBN has been treating issues regarding strong banking supervision with kid gloves in the past but now, the apex bank seems to have woken up from slumber with the implementation of the Basel III.
“My sympathy goes to those Nigerians that may lose their jobs due to the backlash of the implementation of the accounting standard”.
Under BASEL, the CBN’ banking supervision would highlight: fortifying capital positions: previously, Nigeria banks classified as international banks and/or domestic systemically important banks (mostly tier 1) had to meet only a minimum total capital adequacy ratio of 15 percent, while national banks met 10 percent. With these new rules, there will be minimum requirements at several levels of capital, and all banks will be required to hold a capital conservation buffer of 1 percent, in the form of common equity capital.
For systemically important banks, an additional 1 percent of common equity capital is required for higher loss absorbency.
Banks like, Access Bank, GTCO, Zenith Bank, FBNH and UBA would be deemed ‘systematically important.’ The prospective framework will require these banks to have a common equity tier 1 ratio of 12.5 percent and a total capital adequacy ratio of 17 percent.
“Some banks have international authorization, and will be expected to comply with a minimum Common Equity Tier 1 (CET1) of 11.5 percent and capital adequacy ratio (CAR) of 16 percent. National banks include Wema Bank (not covered), Sterling Bank (not covered) and Stanbic IBTC (the banking subsidiary), and are expected to have a CET1 of 8 percent and CAR of 11 percent.
“One of the CBN’s goals with the new guidelines is to constrain the build-up of excessive on and off-balance sheet leverage by the banks. Going forward, banks will be required to compute leverage ratios, which consider a capital measure (solely tier 1 capital) over an exposure measure (on and off-balance sheet exposures, derivatives, and securities-backed transactions).
“The minimum for all banks would be 4 percent, but systemically important banks would be required to have a minimum of 5 percent.
“The apex bank is also introducing a liquidity coverage measure (LCR), which considers the banks’ stock of high-quality liquid assets compared to their total net cash outflows for 30 days and must be above 100%. The banks will also employ five other monitoring tools for liquidity, which include contractual maturity mismatch, concentration of funding, available unencumbered assets, LCR by significant currency and market-related monitoring tools”.
Under Basel III, in the short to medium term, the Nigerian banking sector should be equipped with better capital quality, stronger levels of capital and robust liquidity positions.
You are so interesting! I don’t suppose I have read a single thing like that
before. So nice to discover somebody with some genuine thoughts
on this subject matter. Really.. thank you for starting this up.
This website is one thing that’s needed on the web, someone with
a bit of originality!
Hey very cool site!! Guy .. Beautiful .. Superb .. I will bookmark your web site and take the feeds
additionally? I’m satisfied to find numerous useful information right here within the put up,
we want develop more strategies in this regard, thank you
for sharing. . . . . .
Great post. I used to be checking constantly this blog and I am impressed!
Very useful info specifically the ultimate part 🙂 I handle such
information much. I was seeking this certain information for a very lengthy time.
Thank you and good luck.
I read this paragraph completely on the topic of the difference of latest
and preceding technologies, it’s remarkable
article.
Thanks for a marvelous posting! I definitely enjoyed reading it,
you might be a great author. I will always bookmark your blog and may come back very soon. I want
to encourage that you continue your great work, have a nice day!
Quality posts is the secret to attract the people to visit the site, that’s what this site is
providing.
I visit every day a few web pages and sites to read content,
however this blog gives quality based content.
Informative article, just what I wanted to find.
Wonderful post however , I was wondering if you could
write a litte more on this subject? I’d be very grateful if you could elaborate a little bit further.
Cheers!
fantastic submit, very informative. I’m wondering why the other experts
of this sector do not realize this. You must continue your writing.
I am sure, you’ve a great readers’ base already!
I do not even know how I ended up here, but I thought this post was great.
I don’t know who you are but certainly you are going to a famous blogger if you
aren’t already 😉 Cheers!
Link exchange is nothing else but it is simply placing the other person’s web site link on your page at suitable
place and other person will also do same in favor of you.
I’m not that much of a online reader to be honest but your blogs really nice,
keep it up! I’ll go ahead and bookmark your site to come back in the future.
Many thanks
Wow that was unusual. I just wrote an really long comment but after I clicked submit my
comment didn’t show up. Grrrr… well I’m not writing
all that over again. Anyhow, just wanted to say excellent blog!
My brother recommended I might like this website. He was entirely right.
This post actually made my day. You can not imagine simply how much time I had spent for this
information! Thanks!
I’ll immediately clutch your rss as I can not in finding your email subscription link or e-newsletter service.
Do you have any? Kindly let me recognize in order that I may just subscribe.
Thanks.
Asking questions are genuinely pleasant thing
if you are not understanding anything totally, but this paragraph offers nice understanding yet.
Howdy I am so happy I found your site, I really found you by error,
while I was researching on Aol for something else, Nonetheless I
am here now and would just like to say thanks for a remarkable post and a
all round entertaining blog (I also love the theme/design),
I don’t have time to go through it all at the minute but I have saved it and also included your RSS feeds, so
when I have time I will be back to read a great deal more,
Please do keep up the awesome work.
Hi there, just became alert to your blog through
Google, and found that it’s truly informative. I am gonna watch out for brussels.
I will appreciate if you continue this in future.
Many people will be benefited from your writing.
Cheers!
Hi! Quick question that’s completely off topic. Do you know how to make your site mobile friendly?
My weblog looks weird when browsing from my iphone 4.
I’m trying to find a theme or plugin that might be able to correct
this issue. If you have any recommendations, please share. Many thanks!
Excellent weblog here! Additionally your website lots up very fast!
What web host are you the use of? Can I am getting your associate link in your host?
I wish my web site loaded up as fast as yours lol
What’s up, all is going well here and ofcourse every one is sharing information, that’s actually fine, keep up writing.
It’s fantastic that you are getting thoughts from this piece of writing as
well as from our argument made at this place.
Very good blog! Do you have any suggestions for aspiring writers?
I’m planning to start my own website soon but I’m a little lost on everything.
Would you advise starting with a free platform like WordPress or go
for a paid option? There are so many choices out there that I’m totally overwhelmed ..
Any ideas? Kudos!
I used to be recommended this blog by my cousin. I’m no longer certain whether or
not this publish is written via him as no one else know such special
about my problem. You’re amazing! Thanks!
You are so cool! I do not believe I’ve truly read through
something like that before. So wonderful to find somebody with original
thoughts on this issue. Really.. thanks for starting this up.
This web site is something that is required on the web, someone with a little originality!
You actually make it appear so easy with your presentation but I to find this matter to be really one thing that I
think I might by no means understand. It sort of feels too complicated and
extremely extensive for me. I am having a look forward for
your next publish, I’ll try to get the hold of it!
We stumbled over here by a different web address and thought I might as well check things
out. I like what I see so now i’m following you. Look
forward to finding out about your web page again.
Nice post. I learn something totally new and challenging on blogs I stumbleupon every day.
It will always be useful to read articles from other writers and use something from their websites.
I was recommended this web site by my cousin. I’m not sure whether this post is written by him as nobody else
know such detailed about my difficulty. You’re amazing!
Thanks!
Really when someone doesn’t know then its up to other people that they will assist, so here it
occurs.
Link exchange is nothing else except it is only placing the other
person’s web site link on your page at suitable
place and other person will also do same in support of you.
Hello! This post couldn’t be written any better! Reading through this post reminds me of my
old room mate! He always kept talking about this. I will forward this article to him.
Pretty sure he will have a good read. Many thanks for sharing!
Wonderful blog! I found it while searching on Yahoo News.
Do you have any tips on how to get listed in Yahoo News?
I’ve been trying for a while but I never seem to get there!
Cheers
It is perfect time to make some plans for the future and it is time to be happy.
I have read this post and if I could I want to suggest you some interesting things or tips.
Perhaps you could write next articles referring to this article.
I wish to read even more things about it!
Hi there! I’m at work surfing around your blog from my new iphone!
Just wanted to say I love reading through your blog and look forward to all your posts!
Keep up the great work!
If you are going for finest contents like myself, simply go to see this website all the time as it gives
feature contents, thanks
I really like your blog.. very nice colors & theme. Did you create this website yourself or did you
hire someone to do it for you? Plz reply as I’m looking to create my own blog and
would like to find out where u got this from. cheers
I read this paragraph fully concerning the difference of most recent and earlier technologies, it’s awesome article.
Heya i am for the first time here. I found this
board and I find It truly useful & it helped me out a lot.
I hope to give something back and aid others like you aided me.
It’s going to be finish of mine day, but before finish I am reading
this great article to increase my experience.
You can certainly see your expertise in the work you write.
The sector hopes for more passionate writers like you who aren’t
afraid to mention how they believe. Always go after your heart.
I have read so many articles concerning the blogger lovers
however this piece of writing is truly a good post, keep it up.
It’s a shame you don’t have a donate button! I’d without
a doubt donate to this outstanding blog!
I suppose for now i’ll settle for book-marking and adding your RSS feed to my Google account.
I look forward to fresh updates and will share this site with my Facebook group.
Chat soon!
Outstanding post however , I was wondering if you could write a litte
more on this subject? I’d be very grateful if you could elaborate a little bit more.
Thank you!
Asking questions are in fact pleasant thing if you are not understanding anything totally,
however this piece of writing provides good understanding yet.
Hi! I’ve been following your site for a while now and finally got the bravery to go ahead and give you a shout out from Dallas Tx!
Just wanted to mention keep up the excellent job!
I am really thankful to the owner of this web page who has shared this fantastic article at here.
Hello everyone, it’s my first go to see at this web page, and article is really fruitful in support of me,
keep up posting these articles or reviews.
Excellent blog here! Also your site quite a bit up fast!
What host are you using? Can I am getting your associate hyperlink to your host?
I wish my website loaded up as quickly as yours lol
I’ll right away grab your rss feed as I can not find your email subscription link or e-newsletter service. Do you have any? Kindly let me know so that I could subscribe. Thanks.
No matter if some one searches for his vital thing, thus he/she needs to be available
that in detail, thus that thing is maintained over here.
It’s remarkable to visit this website and reading the views of all colleagues on the topic of this piece
of writing, while I am also eager of getting know-how.
Thanks for sharing such a fastidious thinking, post is fastidious,
thats why i have read it entirely
Wow! Finally I got a web site from where I be able to actually take helpful data regarding my study and knowledge.
Hi there! Someone in my Myspace group shared this site with us so
I came to check it out. I’m definitely enjoying the information. I’m book-marking and will be tweeting this to my followers!
Wonderful blog and brilliant style and design.
Heya terrific blog! Does running a blog similar to
this require a large amount of work? I have no knowledge of computer programming but I had been hoping to start my own blog in the near future.
Anyways, should you have any recommendations or tips for new blog owners please share.
I know this is off subject however I just had to ask.
Kudos!
Hi my family member! I want to say that
this article is amazing, great written and come with almost all vital infos.
I’d like to look extra posts like this .
Ahaa, its fastidious dialogue about this article here at this blog,
I have read all that, so at this time me also commenting here.
I used to be able to find good information from your
content.
Oh my goodness! Amazing article dude! Thanks, However I am experiencing problems
with your RSS. I don’t understand why I am unable to subscribe to it.
Is there anyone else getting similar RSS problems?
Anyone that knows the solution will you kindly respond?
Thanks!!
Hey, I think your website might be having browser
compatibility issues. When I look at your website
in Opera, it looks fine but when opening in Internet
Explorer, it has some overlapping. I just wanted to give you a
quick heads up! Other then that, awesome blog!
Excellent, what a blog it is! This web site gives valuable data to us,
keep it up.
I’m gone to tell my little brother, that he should also visit this blog on regular basis to take updated from hottest
news update.
I am sure this paragraph has touched all the internet users, its really really good paragraph on building
up new website.